momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.It brings together, managers from the agricultural world and important people from external perspectives, such as health, development, strategy and defense. Its objective is to promote regulationof agricultural markets by creating new evaluation tools, such as economic models and indicators,and by drawing up proposals for an agricultural and international food policy.

Volatile agricultural prices:
Great Britain launches a new initiative

November 16, 2015

The UK Department for Environment, Food and Rural Affairs (DEFRA) recently announced a slump in British farming revenues in almost all agricultural activities. Revenues in the poultry sector fell by 19 percent in 2014-2015 compared to the 2013-2014 years. Grain farmers posted a nine percent drop, while the dairy sector reports a five percent decline––a percentage that has risen sharply since the publication of the DEFRA report. Just like in other European Union nations, the agricultural crisis is not sparing British farmers. The problem especially lies with the extreme price volatility.

A commission of the House of Lords recently initiated an investigation on the agro-food industry‘s resilience to market volatility, with the objective to examine how farmers can best manage the impact of price fluctuations.

Farmers must respond to the 11-question survey by December 31, 2015, but the sole fact that it was conceived is already an interesting and revealing occurrence for several reasons. It confirms not only the growing interest for managing agricultural risks in Great Britain––quite far from the Thatcher-era ultra-liberal laissez faire model––but also questions the role of public authorities in controlling volatility. Consequently, the investigation will probe the role of government in alleviating price volatility, and will address the need to reform the CAP to best assist farmers in responding to a crisis situation.

Lastly, the survey focuses on the issues that all member states and Brussels must address to safeguard the integrity and the success of European agriculture. Why not consider a European-wide survey on the resilience of our farming operations to tackle crisis situations, alike the one currently occurring in the European Union?

Because it is a well-known fact: Agricultural markets are increasingly more unpredictable and chaotic, and are thus providing agricultural producers with the growing uncertainty that is potentially damaging to investment, competitiveness and profitability of farms.

Yet, the European Union’s strengthening of decoupled payments as pillars of support systems in the recent CAP reform enacted in 2014 represents turning one’s back to current agricultural realities. The mid-term review of the European multiannual financial framework in 2016-2017 should be an opportunity to initiate a CAP reform that takes into account the strategic, economic and social realities.